If I use the atm in europe will I get the rate that is shown on the BBC ...today it was 1.2,,,,when I checked Wells Fargo and some other sites it ws 1.29...I am aware of the Wells Fargo withdrawal/conversion fees ...I wanted to buy some euros in advance. Thanks...Leaving in a week.
Rani H
Posted by
Mesa, AZ, USA
2 posts
We used our credit union debit card at ATM locations in Europe, and seemed to get an exchange rate close to that published as the "official" rate. We also bought some euros before we left. B of A charged us a fee and used a not too favorable exchange rate. I'm OK with that for relatively small amounts of cash as I'm more comfortable with the local currency in my pocket. It would be good to check with the financial institutions which provide the cards you use. There seems to be a substantial difference in fees.
Posted by
Honolulu, HI, USA
408 posts
Last time we got euros in the US we paid an extra 6% for the bank fee. This trip we have only drawn from ATMs in each country And as Steve says the rate is close to the published conversion rate. In some countries there is a fee, from our bank, when the ATM is not a partner bank. In France PNB is the BofA partner, so no additional fee.
Posted by
Tipton, Iowa
332 posts
Is there a question? At the moment the interbank exchange rate is €1=$1.2283 as shown at http://www.oanda.com/ . Wells Fargo currently charges $1.2929 for foreign currency. This is a markup of 5.3%. Withdrawals of euros with a Wells Fargo debit card incur a 3% markup plus $5. Therefore, a withdrawal of $100 worth of euros is marked up by 8%, a withdrawal of $200 worth of euros is marked up by 5.5%, a withdrawal of $300 worth of euros is marked up by 4.7%, a withdrawal of $400 worth of euros is marked up by 4.3%, etc.
Wells Fargo does not mark up foreign currency withdrawal for at least some of their PMA customers. Rates charged by some other issuers is available here: http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange
Posted by
Eastern Iowa, USA
8037 posts
With a good ATM card (Schwabs was mentioned, My Credit Union is just as good) the rate you get from an ATM including fees will be almost indiscernable from the Interbank rate, essentially what BBC shows.
Beware of fees, the Wells Fargo example, to me, is an example of a card I would not use, a $5 fee is just too steep.
As for the actual "rate"; keep in mind that the true interbank rate changes minute by minute, just like a stock, so what is reported by the BBC or anyone may be a daily average, the value at a given time, or a spot number. It would not be unusual for the rate to be reported at say $1.22 USD and earlier in the day you were able to withdraw at $1.20 USD.
Posted by
Myrtle Beach, USA
12313 posts
At today's rates, if you exchange currency at a bank, you will pay the 1.29. If you use an ATM, you will pay 1.22 but be charged a fee for the transaction.
Which is better?
On $500 the exchange costs about $27/22 Euros (difference between how many Euros you get at the buy rate and the real rate).
Depending on what your bank charges, using a foreign ATM may cost nothing, $3 (flat fee for using the ATM), $5 (one percent foreign transaction fee), or some combination of a fee and percentage.
If you have a good bank, the ATM is a much better deal. If you don't have a good bank, you should change to a good one.
Posted by
Lakewood, Colorado
19273 posts
Wells Fargo sets the rate for currency exchange for the day sometime in the early morning. When they do, the rate for Euro is 5% above the Interbank Rate. During the day, the Interbank Rate might change, so the Wells Fargo rate might be a little more or a little less than 5% over when you look at it. That is the rate for buying Euro online or at a main branch.
The rate you get on a card transaction is based on some Interbank rate (presumable the highest) any time during that day. For most accounts they will apply a 3% currency conversion to that transaction. For some account holders (PMA) in some states, they give so many "free" ATM withdrawals per month.
What is called the Network (Cirrus, Plus, Star, Visa, MC, et al) handle card transactions in Europe. They charge 1% for paying the client in Europe and collecting from your bank in US$. They charge about &frc12;% less if your bank pays them in Euro. So my local bank, without a foreign currency operation, passes on the 1% to me and adds $2 for out of system ATM usage. A "Mega Bank" (Wells, Chase, US, et al) pays them in Euro at ½% over for the transaction, then charges you 3%, because they can.
So, I have an ATM card with my PMA account as well as a CC with Wells. My withdrawals are free and the CC charges me 3%. I have an ATM card with a local bank as well as a CC. They charge me 1% to use either plus $2 at the ATM. Whenever possible, I use my Wells ATM card and my local banks credit card.